CRISIL (CRISIL) Q4 2005 earnings summary

Executive summary

• Nine-month period ended Dec. 31, 2005 followed a shift from an April–March to a calendar-year reporting cycle; total income rose 42.93% YoY and PAT increased 39.38%.

• Growth reflected gains across ratings, advisory, and research, alongside expansion into international equity research and energy advisory markets.

Financial highlights

• Standalone total income was Rs 8,498.50 lakh, PBT Rs 2,804.62 lakh, and PAT Rs 1,751.87 lakh for the nine months ended Dec. 31, 2005.

• Operating income rose 40.46% YoY to Rs 8,295.96 lakh; operating expenses increased 40.83% to Rs 5,693.88 lakh.

• Consolidated operating income was Rs 1,404.74 million and consolidated PAT Rs 245.08 million for the period.

• The board recommended a 100% dividend, or Rs 10 per share, for the nine-month period; annualised payout was 133% versus 125% previously.

Outlook and guidance

• Ratings outlook for 2006 was positive, supported by expected bond-market recovery, final securitisation guidelines, and growth in SME ratings, training, fund-house ratings, and international projects.

• Infrastructure Advisory expected favourable conditions and further overseas opportunities; EconoMatters anticipated sustained positive energy-sector demand in 2006.

• Research and Information expected stronger growth from demand for independent research and use of the Standard & Poor’s network to reach global clients.

• Irevna expected continued positive conditions in 2006, with quality, client service, and staff career progression identified as growth-management priorities.